--- title: "Hiring in Colombia 2026 | Employer of Record Guide" description: "Hire in Colombia through Teamed's EOR. 20.5% employer social security, 15 days statutory leave, Law 2466 of 2025 cuts the working week to 42 hours from July 2026. The Colombia guides, one per layer." canonical: https://www.teamed.global/country-hiring-guides/colombia --- Colombia · Country overview Served by Teamed via a Colombia-licensed EOR entity # What do you need to know to hire in *Colombia*? Colombia has no advance notice requirement for indefinite-contract terminations, but unjust dismissal triggers a mandatory severance indemnity. Employer social security runs at 20.5%, annual leave is 15 days, and Law 2466 of 2025 cuts the maximum working week to 42 hours from 15 July 2026. Each guide below takes one layer. Last reviewed 13 June 2026 · Colombia guide ## How does Teamed handle Colombian hiring for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in Colombia for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, cesantias, the prima de servicios, and the full Colombian employment law stack run on **one platform**. **Real HR and legal experts** manage every Colombian hire, from the first offer letter to the final liquidacion. **An actual person**, not a chatbot or a pooled queue, handles your Colombian team alongside EOR, contractor onboarding, and entity payroll on **one platform**. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. A Colombian contractor who converts to PAYE keeps their record, and that same employee can **graduate** from EOR to your own Colombian SAS or Ltda entity without re-onboarding. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for a first Colombian hire, **until it isn't**. Three things you won't find on any other Colombia EOR guide - **Colombia has no advance notice for indefinite-contract terminations.** You can end an indefinite contract immediately. But unjust dismissal triggers a statutory severance indemnity from day one of service, with no qualifying period. [The termination guide](/country-hiring-guides/colombia/termination-and-severance) explains the indemnity formula and how it differs from the separate cesantias severance fund. - **The cesantias fund is not a redundancy payout. It is a mandatory savings account.** Employers deposit 30 days of salary per year into a government-administered fund by 14 February each year. The employee draws on it for housing, education, or on leaving. Most US buyers confuse it with severance. It runs in parallel, and both may apply on termination. - **Law 2466 of 2025 (the Petro labour reform) took effect from June 2025.** The maximum working week drops to 42 hours from 15 July 2026. Fixed-term contracts now require 30 days advance notice of non-renewal. Night-shift and Sunday premiums also changed. Many competitor pages have not caught up with these changes. Answer.cite this Hiring in Colombia adds roughly 20.5% in employer social security contributions, plus parafiscales contributions (family compensation, ICBF, SENA) of around 9 percent on top of salary. Colombia runs monthly payroll. Statutory leave is 15 days per year, counted in working days. There are 19 public holidays, which are separate from annual leave. The prima de servicios (service bonus) is a mandatory extra month of salary paid in two halves, in June and December. It is not optional and applies to all employees. This page is the map. Each guide below is the detail. At a glance · Colombia COP · Spanish · Monthly payroll Currency COP Employer social security 20.5% health 8.5% + pension 12% only; parafiscales extra Employee social security 8% health 4% + pension 4% Annual leave 15 days working days; separate from public holidays Public holidays 19 festivos 2026 Max weekly hours 42 hours from 15 July 2026 under Law 2466 Maternity leave 18 weeks paid at full salary Top income tax 39% above 31,000 UVT; Estatuto Tributario Art. 241 ![A wide illustration of Bogota at golden hour: the historic La Candelaria neighbourhood in the foreground, Monserrate mountain rising behind, and a clear amber sky above the city.](/images/country-guides/colombia-hiring.webp) Colombia · per employee · per month · flat $ 599 Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk. Zero FX Fixed No setup fee No exit fee 48-hour onboard ## How much does it cost to hire an employee in Colombia in 2026? A Colombian hire costs roughly 130 to 135 percent of gross salary once social security and parafiscales are added. Employer social security is 20.5% for health and pension. Parafiscales add another 9 percent. Both sit on top of the salary. Employer social security (health at 8.5 percent plus pension at 12 percent) runs at 20.5% of salary. Parafiscales contributions to SENA, ICBF, and the family compensation fund (caja de compensacion) add around 9 percent on top. Every employee also accrues the prima de servicios (one extra month of salary per year, paid in two instalments) and cesantias (one month of salary per year deposited into a severance fund). Teamed's Colombia fee sits inside the total cost envelope. Teamed's Colombia price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice. The full breakdown, with worked examples at current statutory rates, is in the cost guide. [Read the full Colombia cost breakdown](/country-hiring-guides/colombia/cost-breakdown) ## Do you need a Colombian entity to hire employees in Colombia? No. An Employer of Record runs Colombian payroll and contracts from day one. Your own Colombian SAS becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary. Forming a Colombian SAS (simplified share company) requires notarisation, registration with the Camara de Comercio, and registration with the DIAN for tax ID. Setup takes four to eight weeks and comes with ongoing payroll, accounting, parafiscales filings, and annual corporate returns. An [Employer of Record](/lp/employer-of-record) is faster and cheaper at low headcount. Teamed runs Colombian payroll, contracts, and social security compliance from day one. The crossover point depends on Colombian salary levels and your accounting costs. For most tech roles it lands around 5 to 8 employees. The EOR vs entity guide runs those numbers. Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Colombian entity on **one platform** under Teamed's Graduation Model, with tenure preserved. [Read the full Colombia EOR vs entity guide](/country-hiring-guides/colombia/eor-vs-entity) ## What changed in Colombian employment law in 2025 and 2026? Law 2466 of 2025 (signed June 2025) brought the most significant Colombian labour reform in a generation. The maximum working week drops to 42 hours from 15 July 2026. Fixed-term contracts now need 30 days advance notice of non-renewal. Law 2466 of 2025 (Ley de Reforma Laboral) changed several rules in force from late 2025. The maximum working week steps down to 42 hours from 15 July 2026, completing the staged reduction that started under Law 2101 of 2021. Night-shift hours were redefined (now 7 pm to 6 am). Sunday and holiday premium pay rules were adjusted. Fixed-term contracts shorter than one year may now only be renewed twice before converting to indefinite. The minimum wage rose to COP 1,750,905/month from 1 January 2026 under Decreto 0159 de 2026, which replaced an earlier suspended decree with the same figure. The legal status of the decree remains subject to review by the Council of State but the monetary amount is not in dispute. The hiring guide and the compliance section cover each change in full. [Read the full Colombia hiring guide](/country-hiring-guides/colombia/hiring-guide) ## What benefits must you provide Colombian employees in 2026? The statutory floor is 15 days of paid annual leave, 18 weeks of paid maternity leave, and a mandatory prima de servicios bonus. The prima is one full month of salary, paid half in June and half in December. It applies to all employees and is not optional. Statutory annual leave is 15 days of working days per year under the Codigo Sustantivo del Trabajo Art. 186. Colombia counts leave and public holidays separately. There are 19 public holidays (festivos) in 2026. Sick pay is the employer's responsibility for the first 2 days. From day 3 to day 90, the employee's health insurer (EPS) covers 66.67% of salary. Maternity leave is 18 weeks, paid at full salary by the EPS (reimbursed to the employer). The cesantias severance fund accrues at 30 days of salary per year, deposited into a fund by 14 February each year. The benefits guide covers each entitlement and the employer obligations. Read the full Colombia benefits guide ## What are payroll taxes in Colombia in 2026? Employer social security (health plus pension) runs at 20.5% of salary. Employees pay 8% in matching health and pension contributions. Colombian social security splits across health (salud) and pension (pension). The employer pays 20.5% in total (health 8.5 percent plus pension 12 percent). The employee pays 8% (health 4 percent plus pension 4 percent). Parafiscales contributions to SENA (0.5 percent), ICBF (3 percent), and the family compensation fund (4 percent) add roughly 9 percent for most employers. Employers above certain revenue thresholds also pay the occupational risk (ARL) contribution, which varies by risk class. Income tax is progressive. The first COP 57,087,660/year is tax-free (1,090 UVT). The rate then rises from 19% through 28% and tops out at 39% above 31,000 UVT. Withholding (retencion en la fuente) applies to monthly payroll. The tax and payroll guide sets out every band and threshold. [Read the full Colombia tax and payroll guide](/country-hiring-guides/colombia/tax-and-payroll) ## How do you terminate an employee in Colombia? Colombia does not require advance notice to terminate an indefinite contract. But unjust dismissal triggers an immediate statutory indemnity: 30 days of salary for the first year, then 20 days per additional year for salaries below 10 minimum wages. Colombian indefinite contracts can be ended on the day, with no notice period. The cost is the unjust dismissal indemnity. For employees earning below 10 minimum monthly wages, the formula is 30 days of salary for the first year, then 20 days per year after that. For employees earning 10 or more minimum wages, it is 20 days for year one and 15 days for each subsequent year. There is no statutory cap (Codigo Sustantivo del Trabajo Art. 64). This runs alongside the cesantias fund, which the employee receives on exit regardless of the reason for leaving. Final pay is due immediately on termination (Art. 65). Terminating a worker who has fuero (legal protection, for example a union rep or a pregnant employee) requires prior authorisation from the Ministry of Labour. The termination guide covers each route and the fuero rules. [Read the full Colombia termination and severance guide](/country-hiring-guides/colombia/termination-and-severance) ## What should you know before hiring in Colombia? Two things catch US buyers out. The first is the prima de servicios: it is a mandatory extra month of salary, not a discretionary bonus. The second is the cesantias fund. It is not redundancy pay. It runs every year, and missing the 14 February deposit deadline triggers penalties. **The prima de servicios is not a bonus.** It is one full month of additional salary, required by law (CST Art. 306 to 308), paid in two halves at the end of June and the end of December. Any employee on payroll for the full half-year receives it in full. New hires and leavers receive a pro-rata share. US buyers who budget only gross salary and social security will undercount total cost by roughly 8 percent. **The cesantias deposit deadline is strict.** Employers must deposit 30 days of salary per year of service into a government-supervised severance fund by 14 February each year. The interest on the cesantias balance runs at 12% per year, also payable annually. Missing the deadline triggers a penalty equal to one day of salary per day of delay. Teamed tracks both dates on every payroll. [Read the full Colombia hiring guide](/country-hiring-guides/colombia/hiring-guide) ## Frequently asked questions How much does it cost to hire an employee in Colombia? Plan on roughly 130 to 135 percent of gross salary once employer social security at 20.5%, parafiscales of around 9 percent, the prima de servicios, and the cesantias deposit are all included. Teamed's Colombia fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples. Can a US company hire in Colombia without an entity? Yes. An Employer of Record like Teamed runs Colombian payroll, contracts, and compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Forming your own SAS takes four to eight weeks and requires DIAN registration, Camara de Comercio registration, and ongoing parafiscales filings. What is the Colombia minimum wage in 2026? The Salario Minimo Mensual Legal Vigente (SMMLV) is COP 1,750,905/month from 1 January 2026, set by Decreto 0159 de 2026. Colombia does not set a statutory hourly minimum wage. The monthly figure applies to all employees on an indefinite or fixed-term contract. How does Colombian severance (cesantias) work? Cesantias is a mandatory severance fund that accrues at 30 days of salary per year for every employee. Employers must deposit the full balance into a government-supervised fund by 14 February each year. It is separate from the unjust dismissal indemnity. The employee can access the fund for housing or education while still employed, and receives the full balance on leaving for any reason. What are the Colombian notice periods? Colombia does not require advance notice to terminate an indefinite contract. The employer can end it on the day but must pay the unjust dismissal indemnity. For fixed-term contracts, 30 days notice is required before the end date if the employer does not intend to renew (Law 2466 of 2025). For termination with just cause, 15 days notice applies in certain cases under CST Art. 62. What is the mandatory prima de servicios in Colombia? The prima de servicios is one full month of additional salary per year, required by law (CST Art. 306 to 308). It is paid in two instalments: half at the end of June and half at the end of December. All employees receive it on a pro-rata basis. It is not a discretionary bonus. Missing or underpaying it triggers a legal claim. Teamed tracks and administers both prima instalments on every Colombian payroll. Teamed Legal Operations Colombia reads as a high-cost labour market once you add the prima, the cesantias, and the parafiscales on top of social security. The logic is actually predictable. The mistakes come from budgeting only gross salary and social security. When a US buyer misses the prima and the annual cesantias deposit, the first Colombian hire costs more than they planned and the fuero rules on protected workers mean you cannot simply end the contract. A note from Tom Price-Daniel Colombia has 19 public holidays, a mandatory 13th-month bonus, and a severance fund that runs every year regardless of how the contract ends. The Law 2466 labour reform brought the biggest changes to Colombian employment in a generation. Most hiring guides have not caught up. Read the right Colombia guide before the first hire, not after the first payment error. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Colombia hiring guide, offer to payslip](/country-hiring-guides/colombia/hiring-guide)guide - [Colombia employer cost breakdown 2026](/country-hiring-guides/colombia/cost-breakdown)guide - [EOR vs entity in Colombia](/country-hiring-guides/colombia/eor-vs-entity)guide - [Colombia termination and severance](/country-hiring-guides/colombia/termination-and-severance)guide - [Colombia tax and payroll](/country-hiring-guides/colombia/tax-and-payroll)guide - [Employer of Record overview](/lp/employer-of-record)core - The Graduation Modelcore - [Teamed pricing, Zero FX Fixed](/pricing)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/colombia)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Ministerio del Trabajo and the DIAN (Direccion de Impuestos y Aduanas Nacionales) for Colombia, or speak to a qualified professional, before relying on any specific framework.